Nigeria: Companies pay 30% tax on “interim dividends” declared

Companies in Nigeria to pay 30% on interim dividends

The acting chairman of Nigeria’s Federal Inland Revenue Service (FIRS), during a 3 September 2015 meeting with tax consultants, addressed steps for improving the administrative and revenue collection efforts of the tax agency. Along these lines, the FIRS acting chairman expressed an intention to enforce a requirement that every company must pay tax, at a rate of 30%, on any “interim dividend” declared, and to regard this as an advance payment of the tax due on profits.

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Among other proposals for effective tax administration are measures for:

  • Prompt filing and payment of taxes by taxpayers
  • Enhancing the flow and exchange of information and improving the level of transparency between taxpayers and the FIRS
  • Joint tax audits by the FIRS and state / local tax agencies
  • Prompt resolution of tax audit issues
  • Improved use of technology
  • Effective database management of taxpayer information

 

Read a September 2015 report [PDF 213 KB] prepared by the KPMG member firm in Nigeria.

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